A new revenue allocation formulae will see Nairobi County receive KSh21.2 billion out of the national revenue kitty of KSh 313.9 billion. This is an increase of KSh 5.4 billion. The new revenue allocation formulae is based on population figures and it will be adopted in the coming financial year.
Under the new arrangement, Nakuru County will see its allocation increase from KSh 9.4 Billion to KSh 12.5 Billion, a 25 percent increase.
Uasin Gishu will be the third-largest gainer with an allocation of KSh 7.7 billion from the previous KSh 5.9 Billion
Kiambu County is placed fourth on the podium with an allocation that will increase from KSh 9.4 Billion to KSh 11.6 Billion, a 20 percent increase.
Other Counties that will receive increased allocations include; Kakamega County which will gain KSh 2.1 Billion, Nandi County (KSh 941.9 Million), Kajiado (KSh 643.3 Million), Kirinyaga (KSh 445.2 Million) and Busia (KSh 617.4 Million).
The biggest losers in the census-based revenue sharing formulae include Lamu whose allocation, according to Commission of Revenue (CRA) will fall from Sh 3.5 Billion to 1.1 Billion and Tharaka Nithi will have its allocation slashed by KSh 1.2 Billion.
The principal function of CRA is to make recommendations concerning the basis for equitable sharing of revenue between the national and county governments, and among the County Governments.
In its new revenue sharing proposal, CRA introduced new parameters and assigned weights thus Population 45 per cent, Equal Share 26 per cent, Poverty Gap 18 per cent, land area 8 per cent, Fiscal Effort 2 per cent and Development index 1 per cent
CRA has used the above revenue sharing formulae to prepare the third revenue sharing basis which will be used to share revenues among counties for a period of five years, effective 2019/2020.
This new revenue sharing proposal is currently before the Senate and public participation will begin on 5th December 2019.
“What we need more right now is proper spending of money in County Governments and proper spending of public money at the national level,” said Martha Karua, former Cabinet Minister in the Kibaki administration.
The push to have a new revenue sharing formulae used by CRA follows concerns that those Counties with huge populations have been disenfranchised in the current set up.
